File image: Bitcoin. (IOL).

CAPE TOWN - According to international cryptocurrency marketplace, Paxful, African virtual currency users are more likely to be male, under 30 years old, a graduate or studying toward a tertiary qualification. 

Paxful, a global peer-to-peer cryptocurrency marketplace, said that virtual currency is popular in Africa. 

According to the company, African consumers account for over R500 million transactions per month on the platform. 

Notably, half of these consumers are under 30 years old. 

Of these consumers, 70% have a tertiary qualification or are studying toward a post-school qualification. 65% are male while 35% are female.

 After Paxful’s leadership team visited South Africa, Nigeria and Ghana recently, they made observations on the consumer base for digital currencies in Africa. 

Paxful claims that cryptocurrencies are mainly purchased by bank transfers or gift cards. 

Paxful further claims that consumers in African countries have an interactive relationship with cryptocurrency. 

There is an increase in transactions and the transfer of goods. Although cryptocurrency is purchased mainly for profit in developed countries, Paxful says that in Africa, cryptocurrencies are bought as a hedge against fluctuating local currencies or as an investment into blockchain start-ups. 

Paxful’s consumers in Africa reportedly said that they are interested in the business of digital currency as it has low fees, speedy transactions, is safe and the currency is stable. 

Co-founder and CEO of Paxful, Ray Youssef said that a peer-to-peer financial revolution is being led in Africa.“We are on the verge of the peer-to-peer financial revolution and it is being led by Africa. 

When it comes to innovation in financial services, in many ways, Africa has an advantage over the so called ‘developed markets’; the continent has an expanding middle-class that has already embraced innovation in banking e.g. the rates of mobile banking users are already high here in comparison to other parts of the world. 

Bitcoin, Ethereum and other virtual currencies are just newer financial services instruments. 

Paxful’s growth on the continent reflects the tremendous appetite for innovation in Africa”, said Youssef.

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- BUSINESS REPORT ONLINE